Madhya Pradesh Exempts EVs and E-Rickshaw Charging Stations from Tariff Hike

The new tariffs will be applicable starting December 26, 2020


The Madhya Pradesh Electricity Regulatory Commission (MPERC) has determined tariffs for low voltage (LV), high voltage (HV), and extra-high voltage (EHV) consumers in the state in its retail supply tariff order.

As per the order, electric vehicles (EV) and electric rickshaw charging stations are exempted from the tariff hike. The new tariffs will be applicable starting December 26, 2020, until further notice or the retail supply tariff order is announced.

The Commission said that distribution companies (DISCOMs) in the state had projected an annual revenue requirement (ARR) of ₹400.16 billion (~$5.4 billion) for the financial year (FY) 2020-21, with a revenue gap of ₹21.69 billion (~$295.5 million) ad have proposed to recover this gap through a 5.73% hike on existing tariffs.

Of this, the Commission said it allowed an ARR of ₹376.73 billion (~$5.1 billion) for FY 2020-21, with a revenue gap of ₹7.3 billion (~$99.5 million) at the existing tariff. Subsequently, it has allowed only a tariff hike of 1.98% across categories.

Other consumers excluded from tariff hikes include domestic consumers with a load lower than 100 watts and a monthly consumption of fewer than 30 units; low tension industries; temporary connections for social or marriage purposes and religious functions; and railway traction consumers.

Metering charges were also not allowed, and consumers are not required to pay meter rent. The Commission also set the tariff for agricultural consumers with a load of up to 10 HP at ₹750 (~$10)/HP annually. Agricultural consumers with a load higher than 10 HP will be charged ₹1,500 (~$20)/HP per annum.

The MPERC noted that rebates or incentives for prepaid metering, advance, prompt, and online bill payments would remain unchanged. Additionally, incentives on time of day (TOD) tariff, load, and power factor will also remain unchanged along with rebates on new and existing HT or EHT connections, captive power projects, railway traction, and open access consumers.

Last year, the Madhya Pradesh Power Management Company had proposed the tariff for electric vehicles and electric rickshaw charging infrastructure in the state. For low-tension consumers, it was set as ₹6 ($0.086), and for high-tension, the tariff was ₹5.90 ($0.072).

Earlier this year, the government revised its guidelines for EV charging infrastructure, which specified that the tariff for the supply of electricity to the EV public charging stations should not be more than 15% of the average cost of supply of power.


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